Jan. 15 (Bloomberg) -- French President Francois Hollande
called for the creation of a Franco-German company to help the
two nations as they make major shifts in energy policy.

It would be a “beautiful alliance,” Hollande said at a
press conference yesterday, without offering details on whether
the effort would involve merging existing utilities or take
another form. He compared the endeavor to Airbus Group, the
European commercial airplane maker with operations in both
countries.

France and Germany are trying to transform electricity
production in their respective nations in the coming decade.
Leaders of both countries have pledged to reduce reliance on
nuclear power and are grappling with how to fund subsidies that
encourage renewable-power production.

The French state isn’t actively seeking the merger of any
French and German companies, government spokeswoman Najat
Vallaud-Belkacem said today.

“The president mentioned Airbus but it’s too early to talk
about which companies could be involved,” Belkacem told
reporters in Paris. “But the ambition is there, and allows us
to talk about European differently, to value Europe.”

France and Germany must “coordinate” their energy
transitions, Hollande said. “It’s a big challenge for Europe
but we must, France and Germany, be examples.”

Fukushima Reaction

After the 2011 Fukushima meltdown in Japan, German
Chancellor Angela Merkel announced plans to shut her country’s
nine reactors within a decade. Hollande made a campaign pledge
to lower France’s reliance on atomic energy to 50 percent of
production from about 75 percent by 2025.

Merkel has said her third-term priority is reforming
Germany’s clean-energy subsidies after rising wind and solar
costs sent power bills soaring. Germany was the world’s biggest
market for solar technology in three of the past four years as
project owners were paid above-market rates for low-emission
power.

France is preparing legislation for this year that will
outline a planned shift toward more green power and energy-saving. The nation has also begun reviewing subsidies for green-energy developments, Environment Minister Philippe Martin said
in December.

Development of French wind and solar installations slowed
last year in part because of a lack of clarity about what will
happen to the higher-than-market rates the projects receive for
their output.

Former French Environment Minister Delphine Batho and her
former German counterpart Peter Altmaier started a project last
year to cooperate on renewable-energy development.